UPSC 2020EconomyModerate

"Gold Tranche" (Reserve Tranche) refers to

A
a loan system of the World Bank
B
one of the operations of a Central Bank
C
a credit system granted by WTO to its members
D
a credit system granted by IMF to its members
Correct Answer

Explanation

The Gold Tranche (now Reserve Tranche) is a portion of a member country's quota with the International Monetary Fund (IMF) that can be accessed automatically without conditions or service fees. While the World Bank (Option A) provides long-term development loans, the IMF focuses on short-term balance of payments support through its quota system, making the World Bank an incorrect choice. This question tests the core concept of the IMF’s resource structure and the specific liquidity facilities available to its member nations.

International Organizations / Global FinanceInternational Monetary Fund (IMF) operationsGold TrancheReserve TrancheInternational Monetary Fund (IMF)credit systemmembers

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